ISLAMABAD - The consumers of ex-WAPDA Discos (XWDISCOSs) will pay an additional Rs 61 billion in their December bills as the National Electric Power Regulatory Authority (Nepra) has allowed an increase of Rs 4.7446 per unit in power tariff on account of monthly fuel charges adjustment (FCA) for October 2021.
The Authority, after incorporating the adjustments, has reviewed and assessed an increase of Rs.4.7446 per unit in the applicable tariff for XWDISCOs on account of variations in the fuel charges for the month of October 2021, said a notification issued by NEPRA here Thursday.
On November 30, 2021, NEPRA had conducted public hearing on CPPA-G petition for monthly FCA, with Nepra Chairman Tauseef H Farooqi in the chair and reserved the judgment.
In a petition submitted to Nepra on behalf of the power distribution companies (XWDISOCs), the CPPA-G said that for the month of October 2021, the reference fuel charges from the consumers were Rs 5.1733 per unit while the actual fuel cost was Rs 9.9261 per unit. Therefore, it should be allowed to pass the increase of Rs 4.7528 per unit to the consumers. Due to the decrease in hydel, wind, bagasse and solar generation, expensive fuel such as High Speed Diesel (HSD), furnace oil and expensive LNG was used during October which had raised the generation cost.
The regulator was informed that excessive use of furnace oil also made electricity expensive. The generation from HSD increased from 2.34GWh in September to 57.10 GWh in October. The cost of electricity generated from HSD was Rs 25.2250 per unit. The electricity generated from furnace oil during October increased to 1228.66 GWh from 997.44 GWh in September at the cost of Rs 21.2273 per unit.As per the in-house analysis workings carried out, it has been noted that around 1,228 GWIh were generated from RFO and 57 GWh were generated using HSD during the month of October 2021, whereas the capacities of RLNG, coal and gas based efficient power plants were underutilized. The net amount deductible, on provisional basis, from the overall claim due to deviation from EMO due to underutilization of efficient power plants works out as around Rs.63.42 million. The Authority has decided to deduct this amount provisionally in the instant FCA, until NPCC, NTDC and CPPA-G provide the required details along with complete justification in this regard to the satisfaction of the Authority.
NTDCL reported provisional T&T losses of 245.31 GWh based on energy delivered on NTDCL system during October 2021. NTDC in addition also reported T&T losses of 20.55 G\Vh for PMLTC (HVDC) line. 16. NTDCL is allowed T&T losses of 2.80% only at 500KV and 220KV network, while PMLTC (HVDC) is allowed T&T losses of maximum up-to 4.3%.
The Authority has reviewed the data provided by CPPA-G and due diligence is done accordingly. From perusal of the information so provided by CPPA-G, the actual pool fuel cost for the month of October 2021 is Rs.9.9261 per unit, against the reference fuel cost component of Rs.5.1733 per unit of the notified consumer-end tariff of ex-WAPDA DISCOs for the 2019-20. The actual fuel charges, as reported by CPPA-G, for the month of October 2021 increased by Rs.4.7528 per unit as compared to the reference fuel charges. During the hearing, the Authority also observed that, prima facie, certain efficient power plants were not fully utilized and instead energy from costlier RFO/HSD based power plants was generated to the tune of over Rs.27,521 million during the month of October 2021. The Authority has been directing NPCC/NTDC & CPPA-G repeatedly to provide complete justification in this regard, to the satisfaction of the Authority and submit complete details for deviation from Economic Merit Order (EMO), showing hourly generation along-with the financial impact for deviation from EMO, if any, and the reasons, thereof.
However, NEPRA decided that the actual FCA for October 2021 was Rs.9.9179 per unit against the Corresponding Reference Fuel Charge Component Rs.5.1733 per unit. Therefore, NEPRA allowed an increase of Rs Rs.4.7446 per unit. The total impact of the tariff hike will be around Rs 61 billion (FCA+ 17percentGST). The increase shall be applicable to all the consumer categories except lifeline consumers and XWDISCOs shall reflect the fuel charges adjustment in respect of October 2021 in the billing month of December 2021.